Off the coast of the Mexican state of Tabasco lies a well that holds an enormous amount of potential. Various companies and interests were trying to get it on the deal for a long time, ever since 2015 when Mexico opened up a bidding war for the rights to drill there. However, it was not always this way.
In 1938, Mexico put forth a policy preventing foreign investors from putting their funds into the oil and gas industry in Mexico. However, this led to a monopoly. Pemex was the only game in town, bringing competition down and incentives to innovative fell away. When Mexico allowed foreign investments, three firms stepped up to the plate. Premier Oil out of London, Sierra Oil and Gas from Mexico, and Talos Energy, LLC from Houston.
The three firms will split the proceeds almost evenly across the board. Sierra Oil and Gas will have more than others in the ownership, as Mexico wants to ensure their people get the best end of the deal. Analysts predict the drilling will be a success. That’s a good sign for a well that holds anywhere from 100 to 500 million barrels of crude oil.
Talos Energy is a Houston based oil and gas company. They were founded by investors with over $600 million in capital. Their parent company, Phoenix holding, had a cohesive strategy from the start. They didn’t want to fall into the fate of other companies that didn’t grow quick enough. They decided to quickly acquire Helix Energy, a competitor, for $620 million. It’s one of the reasons that their revenue is up to $475 million annually.
This revenue isn’t just dispersed to management and ownership like other companies. Talos stands apart in that it shares the profits with all employees. This goes from the clerks all the way to the geoscientists that go out and analyze the wells. Because of this, management finds that employees are more motivated than in other companies. It has led to it being one of the top and fastest growing small companies in the industry. Right now, they focus on the Texas and Mexico regions, pumping around 16,000 barrels of oil per day.
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